[Choi Jun-young's Urban Pilgrimage] The Movie 'Gisaengchung' and the Megacity

Choi Jun-young, Senior Advisor at Yulchon LLC

Expressions such as social polarization, the rich getting richer and the poor getting poorer, and the 1% versus 99% have become familiar over time. The phenomenon of wealth being concentrated among a few is occurring worldwide, and awareness of this issue has become universal. The global acclaim for director Bong Joon-ho's film "Parasite," not only in South Korea but around the world, stems from this shared recognition of such polarization.

In 1995, the Brookings Institution in the United States conducted a simulation to understand how economic systems are created and operate from a primitive natural state. They created a hypothetical sugar world where resources were unevenly distributed and randomly placed 250 actors with different abilities. The surprising result of the simulation was that although the middle class initially made up a significant portion of wealth distribution, over time wealth became concentrated among a few, ultimately resulting in 20% owning 80% of the total wealth. The wealth concentration and polarization we experience may be a hidden universal principle of nature.

Interestingly, this phenomenon also appears spatially. As of 2018, 55.3% of the world's population lives in cities. Although there is vast land, people are concentrated in about 2% of the Earth's surface. In other words, 70% of the world's Gross Domestic Product (GDP) generated by cities is concentrated in just 2% of the area. The United Nations (UN) projects that the urban population ratio will rise to 60% by 2030, and one-third of the total population will live in cities with populations over 500,000.

In 2000, there were 371 cities worldwide with populations over one million. By 2018, this number had increased to 548, and it is expected to reach 706 by 2030. Among these, cities with populations exceeding 10 million are classified as megacities, which are projected to grow from 33 in 2018 to 43 in 2030. The increase in urban residents does not simply mean more cities but also a concentration of people in a few large metropolitan areas.

Polarization phenomena such as social polarization and the rich getting richer and the poor getting poorer also appear spatially
As of 2018, 55.3% of the world's population lives in cities... about 2% of the Earth's surface
Megacities with populations over one million expected to increase from 33 in 2018 to 43 in 2030

Most newly emerging large cities are located in Asia and Africa. As of 2018, the largest megacity in the world was Tokyo Metropolis in Japan, with a population of 37 million. By 2030, Delhi in India is expected to become the largest megacity with 39 million people, followed by Dhaka in Bangladesh with 28 million and Kinshasa in the Democratic Republic of Congo with 22 million, all projected to be among the world's top ten megacities. The growth of these large cities has brought various side effects such as housing shortages, increased crime, traffic congestion, and the spread of disorderly urban areas, as we have experienced over the past 200 years. Nevertheless, more people continue to move to these cities, and this trend is strengthened by faster information exchange through the spread of the internet and smartphones. Like wealth concentration, the concentration in large cities may also be an inherent phenomenon hidden in nature.

While urbanization has its side effects, it brings very positive effects in terms of economic growth. Historically, for every 10% increase in urbanization level, a country's per capita productivity increases by 30%. Much of the economic growth in developed countries since the Industrial Revolution can be explained by urbanization progress. Countries with already high urbanization rates have fewer cards to play to increase economic growth, whereas countries with low urbanization rates still hold significant growth potential.

Looking back, South Korea also went through a similar process since 1950. Despite being devastated by war, people left rural areas and flocked to Seoul and other large cities. Observing the influx, some thought, "The more we do, the more people come, so leaving things as they are is the best strategy." This idea was concretized in the early 1960s when then-Mayor of Seoul, Yoon Chi-young, stated, "If we do something in Seoul, more people will come, so doing nothing is best." If, after that, nothing had been done as Mayor Yoon suggested, would the population growth in the Seoul metropolitan area have eased and South Korea achieved balanced development? Probably not.

Starting with Mayor Kim Hyun-wook, Yoon Chi-young's successor, the city took a completely different path. Instead of avoiding problems, efforts were made to find solutions. Roads were built, bridges constructed, pedestrian overpasses and underpasses created, and apartments developed. Amid these efforts, numerous controversies and accidents occurred, accompanied by coercion and excesses, with many sacrifices and high costs. However, thanks to these efforts and responses, Seoul was able to grow beyond disorder and congestion, enjoying the benefits brought by complexity, and along with it, South Korea was able to grow.

When urbanization level increases by 10%, per capita productivity increases by 30%
South Korea's urbanization rate at 92%, the highest in the world... a valuable resource

People sometimes resign themselves to the laws of nature as something humans cannot control. However, human effort and investment can mitigate and minimize the outcomes brought by such laws. Typhoons will blow regardless of human presence on Earth, but we know from experience that appropriate measures can minimize damage. Rather than resigning to wealth polarization as inevitable, people created and implemented new ideologies and systems such as socialism. Progressive taxation and welfare systems that emerged in this process have significantly alleviated these problems. Of course, no single system can solve everything, and even if past efforts showed results, their effects tend to weaken over time. Each time, instead of repeating past methods, it is proper to look at the problem anew and consider solutions.

In South Korea, the urbanization rate far exceeds the world average of 54%, reaching 92%, the highest level globally. At this point, if existing cities are further advanced and operated efficiently, they can inject new vitality into economic growth. The growth of cities and population concentration are not problems to be overcome but valuable resources to be well utilized.